A 35% tariff will be imposed on Canadian exports to the United States starting August 1, President Donald Trump said in a letter to Canadian Prime Minister Mark Carney on Thursday.
The US president has sent more than 20 such letters to several countries since Monday amid his trade war.
Trump’s letter to Carney came even as Canada and the US were negotiating a trade deal. Canada and the United States’ southern neighbour Mexico are attempting to put their trilateral trade deal back on track.
The United States-Mexico-Canada Agreement had replaced the North American Free Trade Agreement in 2020 after Trump forced a renegotiation during his first term in office. The USMCA was to be reviewed by July 2026.
However, Trump has targeted Canada and Mexico, claiming that they had not done enough to stop undocumented migrants and drugs from entering the US.
Reacting to Trump’s announcement on Thursday, Carney said that Ottawa will continue to defend its businesses.
“Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses,” Carney said on social media. “We will continue to do so as we work towards the revised deadline of August 1.”
Trump’s so-called reciprocal tariffs had taken effect on April 9. Hours later, however, he had reduced the rates on imports from most countries to 10% for 90 days to provide time for trade negotiations.
Before this, Washington had already imposed a 25% tariff on a range of products from Canada, Mexico and China in February.
The US president had repeatedly said he intended to impose a reciprocal tax on several nations citing high tariffs the countries impose on foreign goods.
The tariff plans led to concerns of a broader trade war that could disrupt the global economy and trigger a recession.
Washington has set August 1 as the deadline to conclude trade talks.
However, Trump told NBC News on Thursday that he was planning to impose a blanket tariff of 15% or 20% on most trade partners. The blanket tariff rate is currently 10%.
“Not everybody has to get a letter,” Trump said. “You know that. We’re just setting our tariffs. We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now.”
On Sunday, Trump said that Washington will impose additional 10% tariffs on countries aligning with the “anti-American policies” of the BRICS grouping.
The BRICS comprises India, Brazil, Russia, China, Saudi Arabia, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates. Washington views the group as attempting to become an economic counterweight to the US.
You’ve read Scroll.
Now help sustain it
Scroll is funded by readers, not corporate owners. If you believe our work matters, support our newsroom. Become a member today!
We’re not driven by clicks or corporate interests – just honest, independent reporting. Keep us going. Support Scroll today!